Today in Pictures - 455 Eye Street

Equity Residential's mixed-use redevelopment encompassing several historic properties at 443-459 Eye Street, NW is close to beginning construction.  With a predicted groundbreaking in August, and with Clark now signed up as the General Contractor, developers will soon begin tearing down the non-historic portion in favor of a residential tower with 174 units.  Hickock Cole Architects has designed the new building.

Washington D.C. real estate development news.  Photos by R

Equity Residential's Mt. Vernon Triangle Project Set to Break Ground

Equity Residential's mixed-use redevelopment encompassing several historic properties at 443-459 Eye Street NW is set to begin construction this summer.

"We're looking at an August groundbreaking," said Greg White, Vice President of Development at Chicago-based megadeveloper Equity Residential. "We're working with Clark Construction, and finalizing construction documents now.  We hope to deliver first units in a little less than two years; the summer of 2014."

Once touted by former owner Walnut Street Development as Eye Street Lofts, Equity Residential purchased the property for $5.1 million in April of last year and, with HPRB approval for the plans secured since 2006, advanced the project swiftly.

The design, by Hickock Cole Architects, preserves the two 1880s-era historic rowhouses on the lots (as mandated by law), and incorporates the also-historically-designated industrial buildings, while erecting two additional residential towers directly adjacent.  When complete, it will offer 165,000 square feet of residential space and just over 2000 square feet of ground floor retail.

"It was originally conceived as 162 units, but the plans have been increased to 174 units," White said.  "Architecturally, it's a little old, a little new; you have the historic rowhouses, and then a different type of high-rise on top, and a new one to the side. We're blending it all together to make it work."

The site was formerly the home of Gold Leaf Studios, an artists' space, and an auto body shop housed in a former blacksmith's shop. Another building on the parcels, which was leased by BicycleSPACE, is marked for demolition.


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District Releases Stevens School Development Solicitation

The District government has released a solicitation for developers to further develop the Stevens school, a historic landmark, in downtown DC / West End. The District is seeking developers to renovate and expand the historic school, built in 1868 to educate the children of freed slaves, making use of the adjacent empty lot. The DC government does not specify a use for the building, but does note that the ANC has expressed a strong statement of support for an educational institution - and the School Without Walls in particular - to take over the space in a manner "consistent with its African American heritage."

The Thaddeus Stevens Elementary School at 1050 21^st Street, NW, was closed by the Fenty administration during its school consolidation campaign, which issued a similar request for development proposals in late 2008, but later voided the winning bid. The District government selected apartment goliath Equity Residential as the winning bidder in 2009, but after 18 months of strong community opposition to its selection, the administration nixed the award and mothballed the building.

The school, "the first modern school in the District built for African-American students,” is listed on the National Register of Historic Places and even hosted First Child Amy Carter in the 1970's.

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Mount Vernon Triangle's Critical Mass

Mount Vernon Triangle may soon be a bit crowded. The small neighborhood, tightly encircled by L'Enfant's avenues, has been struggling for years to develop a critical mass of development, a moment that may now be at hand.

If all the projects currently in the pipeline for the neighborhood are built, Mount Vernon Triangle will more than double its square footage of office space, add 1,570 apartments/condos and 380 hotel rooms, and increase retail offerings by 157,500 s.f. Despite its shortcomings - no Metro stop, convention center, or arena within its borders, it can claim close proximity to each, a fact that continues to fuel development.

Case in point: two new projects by The Wilkes Company and Quadrangle, with preliminary designs by Hartman-Cox, and targeting a 2012 start date for construction: 400 K (300,000 s.f. office space, 12,500 s.f. retail) and 300 K (500,000 s.f. office space, 25,000 s.f. retail - pictured at left). Both are part of the larger Mount Vernon Place development that started with a pair of condominiums. Two additional buildings by Wilkes and Quadrangle are also in the works for the area: 440 K (planned as a 234-unit apartment with ground-floor retail, but that could turn into office space) and 255 H Street, a 400-unit apartment building.

Numerous other large developers have projects on the boards - Steuart, MRP Realty, Bozzuto, The Donohoe Companies, Kettler, and Equity Residential - but few have pulled the trigger just yet, and Bill McLeod, executive director of the Mount Vernon Triangle Community Improvement District said those who don't take action soon, "will end up missing out." McLeod, who has been with the MVTCID - created by Mayoral Order in 2004 - for the past five years, added that investors have been paying attention to the area of late.

Equity also hopes to start construction next year on the 170-unit apartment and historic restoration project "Eye Street Lofts", originally a vision of local Walnut Street Development that was iced in 2007. Equity - the largest publicly traded owner and operator of multifamily apartment complexes in the U.S. - bought the land fully entitled a few months ago. Equity will go before the Board of Zoning Adjustment on December 13th. With the area designated as a historic district in 2001, the project received HPRB approval in 2006 (as pictured below) to restore two circa 1880, 3-story townhomes, a 2-story garage/ warehouse, and a small former blacksmith shop in the alley. The building currently leased by BicycleSPACE will be razed.

Nearly a decade after Mount Vernon Triangle was first targeted for redevelopment by the Office of Planning and ten major property owners in the area in 2002, existing apartments are 96-percent leased, condos are sold out, 230,000 s.f. of office space is leased at 455 Massachusetts Avenue and, notes McLeod, only the top floor of the 392,000-s.f. office at 425 Eye Street needs a tenant.

The Meridian, at 425 L Street, a 390-unit apartment developed by Steuart Investments and Paradigm, is now under construction. The topping out of the 14th (and final) story occurred this past September, the project will begin leasing soon and should complete by next June. Phase II of the project will be a 300-unit apartment located next door at 400 New York Avenue.

Next in the queue in Mount Vernon Triangle is Kettler's $80 million, 13-story, 233-unit apartment with 7,000 s.f. of street level retail at 450 K Street (pictured right), under construction next spring and delivering in 2014.

Of great interest to those invested in the area is the timeline of the K Street Streetscape Improvement, the contract of which is currently being finalized by DDOT. The 18- month infrastructure project should be underway early next year, said McLeod, resulting in a mid-2013 completion date.

The long-anticipated $9m reconstruction of K Street between 7th Street and 3rd Street will bring new paving, sidewalks, streetlights, and plantings. Streetcars are also in K Street's future, though the District's focus is currently on funding other legs first, i.e. the H Street Corridor.

Driving much of the current wave of development regionally is the gradually opening financing spigot and Washington D.C.'s perch on the top of the national real estate market. But Mt. Vernon Triangle has something else more rare in downtown DC: empty space. The Downtown Business Improvement District (BID) notes that only about 5 million s.f. of unbuilt space remains available downtown, 2.5m of that at CityCenter and 2m of that above the Center Leg Freeway. That leaves the equivalent of only a few office buildings that could be built downtown before growth has to expand outward, and Mt. Vernon is the nearest spot.

Yet if all projects currently in the pipeline are realized, Mount Vernon Triangle will max out its 600-room hotel capacity, reach 93-percent of its residential capacity (4,250 units), 87-percent of its office space capacity (3 million s.f.), and 84-percent of its retail space capacity (335,000 s.f.). Of the 380 hotel rooms planned for the area, 350 of them are contained in what was once one of the most talked about projects for the triangle, "The Arts at 5th and I" a mixed-use development on the corner of 5th and Eye Street, still considered a "top tier" priority by Mayor Gray.

Donohoe and Holland Development won the right to develop the site in September of 2008, but couldn’t finance the project (pictured below) in the face of the recession. This fall, Deputy Mayor Victor Hoskins visited the ANC with a scaled-back, 250,000-s.f. building with two side-by-side hotels, one a 150 room boutique hotel and the other a 200 room extended stay offering 350 rooms above 10,000 s.f. of street-level retail.

In April, it was announced that art in the form of the Liberty North Community Market would be coming soon to the site. The market arrived this fall, and with no plans to begin construction within the next year-and-a-half, the market's vendors have the 2012 growing season to get comfortable.

Donohoe has yet to visit the DC Council for approval its plan, which includes a 99-year ground lease from the District, something that may happen in the next "two to three months," said Jad Donohoe, after which 12 to 14 months will be taken to flesh out the design by Shalom Baranes, complete the construction documents, get permits, and secure financing.

Yet another project is less certain. It will require a 30,000-s.f. floorplate over I-395 between K and New York Avenue to build a 10-story, 1.7 million-square-foot Washington Global Trade Center with a sleek, open-clam-shell globe design (to the right), a development that has been proclaimed a long shot.

Washington D.C. real estate development news

Demolition Making Way For Madison Apartment in Alexandria

Demolition has begun at 800 N. Henry Street in Old Town Alexandria, the site claimed by the Madison, a two-building apartment complex developed by Equity Residential. According to Dirk Geratz, principal planner for the City of Alexandria, construction is to begin in November.  Equity Residential took over sole responsibility of the project last year and can be credited for its revival. The development had been idle after Alexandria City Council approval came three years ago; idle "due in part to the economy over the last several years," according to the City. New construction costs, estimated to be around $37 million, will be spread across two 5- and 7-story buildings containing 360 apartment units, nearly 9,700 s.f. of ground-floor retail and 45,280 s.f. of "open space" - public plaza, courtyard and rooftop pool - designed by SK&I, which was brought on as the architect in 2010, replacing Cooper Carry. 

In February, the plan was both bumped up and scaled back from what was approved in 2008 - whereas the number of apartment units increased, from 344 to 360, retail space was cut, from 23,000 s.f. to 9,672 s.f., and the number of parking spaces trimmed by nearly 100 spots (from 561 to 464). Retail space will be located on the corner of North Henry and Madison Streets. Varied styles and materials will be incorporated throughout the property in an effort to make the whole development appear as several distinct entities. A new private access street will connect North Fayette to North Henry Street. The development, initially meant to be underway in 2009, is located two blocks from the Braddock Metro stop in West Old Town; the project awaited approval in 2007 due to the incoming Braddock Metro Small Area Plan, which was adopted by Council in March of 2008. 

Article amendment: SK&I was brought on as the project architect (replacing Cooper Carry) in 2010, when Equity Residential took over sole responsibility of the project; Trammell Crow Co. was a development partner in 2008, when the project was first approved. This article has been updated to reflect these facts.

Alexandria Virginia retail and real estate development news

Equity Underway on Lyon Park Apartments

Equity Residential is now officially bullish on the DC market, having broken ground several weeks ago on its newest apartment project in Arlington's Lyon Park neighborhood. With its confidence in the Washington DC area market boosted by its success at 425 Mass, a new but empty building that Equity bought after foreclosure for $167m and then filled more than 70% of its 557 units, Equity is now taking on a project that also struggled for several years in a neighborhood not quite obvious for its retail and residential potential.

The project at 2201 Pershing Drive will replace several dated stripmalls with 188 rental apartments on top of a substantial 33,000 s.f. of retail base. Equity, the largest owner-operator of apartments in the country with 133,000 units (and counting), owns the adjoining Sheffield Court apartment building, so it presumably knows something about the not-entirely-obvious site away from the Clarendon Boulevard golden strip. Despite the large retail footprint, individual shops will be scaled small for local-serving operators, and Equity representatives say they have not even begun trying to secure tenants yet.

Marty McKenna of Equity says

his company will complete the apartments in the third quarter of 2012, a culmination of years of waiting for a project once anticipated to break ground in 2008 under plans approved for a previous developer by Arlington County in January of 2008. Designed by Bethesda-based SK&I, the traditional brick, stone masonry, glass, and cementitious fiberboard sided structure consists of two buildings, each using the same materials and rising four and five stories - LEED certified as part of the county's approval - with 18 subsidized apartments and parking behind each building for the retail and one level below-grade parking for residents.

The Washington Smart Growth Alliance has given the project the smart thumbs up, prodded by the stripmalls-into-anything philosophy, despite the generous

concession to the automobile, but helped by the 85 bicycle spaces and proximity to bus routes. Equity will salvage the small historic facades by dismantling the limestone blocks, cleaning them, and reassembling them back into contemporary apartment building. Demolition should be complete within the next 2-3 weeks. Details from Abbey Road, the previous developer, are available on their website.

Arlington, Virginia Real Estate Development News

The (Distant) Future of Getting from Home to Work in DC

Equity Residential unveiled the latest gadget today in its "flagship" apartment building, a recharging station for electric cars, a move it hopes will have instantaneous appeal to apartment dwellers and, someday, practical application for commuters. Equity demonstrated the new charging station at 425 Mass, which opened last year as Equity's highest priced apartment building in the DC Metro area, and has already generated its own positive charge after buying out defunct Broadway Development and leasing 40 of the 557 units per month on average, making it now 68% leased. But that doesn't photograph as well as a new Tesla, and promoters had one on hand to demonstrate how an electric vehicle owner could plug in, swipe their credit card and, for $1 - $3 per night, recharge sufficiently for most DC area commutes. Equity touted the feature as one of its "environmentally conscious" design features, and will soon offer Zipcar as another green alternative. The message: live in style here, drive in style nearby, and save money, time and the environment. The $109,000, fully electric Tesla Roadster can charge in 3.5 hours at the high voltage outlet now at 425 Mass, or in half a day (1 hr per 5 miles) at a typical 110v outlet (adapter included). The plug-in station is currently available only to building residents, but several other charging stations such as at the Capitol Hill Hyatt offer public stations, and sites like MyChargePoint.net offer apps to find the nearest station. The Roadster - "the smoothest acceleration on the planet" - says a corporate rep, needs no oil, gas, and almost no servicing, but don't expect to see a garage-full soon. Only 2 of the building's 560 spaces are sequestered for it's lone charging station, and even promoters know to take a distant view of the technology. "The cars just aren't there yet" says Andy Kinard of CarCharging, which installs the stations for free and gives Equity a kickback on sales of electricity at the plug. CarCharging and Equity plan a slow roll-out together, with stations to open in Boston and Seattle as "testbeds" to gauge and prime the market. Kinard sees the future of voltage-powered autos in "smart" technology in multi-family buildings and public garages, where the plug feeds usage data to the power source and shows its location to the public. But this is the company's first DC locale and it has no immediate plans for a second. Equity, the largest owner-operator of apartments in the country with 133,000 units, is well-placed to guide the technology but is not rushing headlong into the market, though it can quickly add more plug-in stations if needed. Equity also owns 2400 M and 1210 Mass, and is "increasingly focused on urban core, mixed-use" property, says Area VP Robert Grealy. Equity entered the DC market in 1995 with a portfolio purchase of the Artery Group's apartment buildings, garden-style apartments it has been shedding in favor of "higher quality" residences since 2005. Washington DC real estate development news

Arlington Boulevard Development Ready to Break Ground with New Owners

In January of 2008, the Arlington County Board approved plans to redevelop two "decaying old" strip malls at 2201 N. Pershing Drive into a mixed-use development consisting of 188 residential units over 35,000 s.f. of ground floor retail space. The project plans were originally developed by Abbey Road Property Group and anticipated to break ground in late 2009. But like so many development plans approved in 2008 just before the market rolled southward, the property has idled for the last two years. That may change. Equity Residential acquired the property and the accompanying development plans earlier this spring, and now the project looks set to move forward. In September, developers held a preliminary meeting with the Lyon Park Citizens Association, during which the attending public was informed of impending construction. Currently in the process of securing final building permits, and looking to award a general contracting bid next week, the development team expects to break ground on the project by December of this year.

Designed by SK&I, the traditional composite of brick, stone masonry, glass, and Hardie paneling (brick-like "cementitious" fiberboard product) will be set back several feet atop the glassy ground floor retail facade. The project consists of two buildings, each utilizing the same materials and rising four and five stories, designed to be LEED certified. Of the 188 units, 18 will be designated as affordable dwelling units. Structured parking behind each building will service retail shoppers, while a one level below-grade garage will provide parking for residents. Each building will hug its own small, central, landscaped courtyard, outfitted with benches, trees, shrubbery, and a small water fountain.

The Washington Smart Growth Alliance lists "reusing older shopping centers as a key smart growth strategy," making this development an apparent choice for its "Recognized Smart Growth Project" designation despite not being adjacent to a metro station (Clarendon Metro is about 7 blocks or three quarters of a mile). But adjacency to major bus routes makes the project a better example of urban in-fill. The influx of new restaurants and shops set to occupy the future retail spaces will make for an more walkable living experience for residents given the lack of immediate options. To further encourage public transit and green transportation alternatives, and garner more green points, over 85 bicycle spaces are being included in the design.

Pedestrians in Arlington may find it difficult to recognize any semblance of a recession on the street, but residential developments that were once popping up like spring tulips have been largely absent since the financial collapse. But clearly, Equity senses a barometric change. By investing in what is currently a relatively isolated block across from Ft. Myer, Equity Residential seems to be banking on a widening of the dense but narrow Ballston to Rosslyn corridor. While many projects remain on ice, signs of a thaw are significant. With such major local projects now on the docket such as 1812 N. Moore's speculative build out, Rosslyn Commons, and Skanska's Rosslyn office project, indicators of increased construction are apparent. Or perhaps Equity is enjoying the greater DC market, having signed leases with 182 new tenants within its first 90 days at its recently acquired 425 Mass Ave apartment, and is hoping for the same kind of success across the river.

Arlington, VA Real Estate Development News

Mt. Vernon's Dumont Sells for $167 Million

Today, the lagging and tangled fate of the Dumont was finally sealed, when Equity Residential acquired the property in a $167 million, all-cash transaction. The Dumont has sat at 425 Massachusetts Ave complete and vacant since the building was substantially completed in early 2009. Equity will be leasing the Dumont's 559 units as rental apartments, though the building was originally intended as condos.

Designed by Esocoff & Associates, the Dumont's sob story escalated in December 2008 when lender PB Capital issued a foreclosure to then-developer The Broadway Group, which had defaulted on the debt. Real estate sales by McWilliams Ballard began in April of 2006 and ended in September of 2008 with only about 150 of the 559 units sold; the project has largely sat vacant since that time.

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